IDB Invest, a member of the Inter-American Development Bank (IDB) Group, together with Rabobank, provided $30 million in financing to Desdelsur S.A., which is dedicated to the production, marketing and export of agricultural products in Argentina. The loan will allow Desdelsur to develop its investment plan, boosting the productivity and competitiveness of this industry, which promotes foreign exchange flows and employment in areas with high rates of poverty, unemployment and the informal labor market.
The financing will allow Desdelsur to complete its comprehensive livestock project, turning its feedlot into the largest in Argentina, increasing the production of legumes and oilseeds for export, expanding the agricultural value chain, and increasing its financial flexibility. With a tenor of up to seven years, the financial package includes a $15 million loan from IDB Invest and the mobilization of $15 million from Rabobank.
The IDB Invest deal also includes two technical assistances. IDB Invest will support Desdelsur in the creation of a stakeholder and training plan for the neighboring indigenous and traditional communities (Wichí, Chorote and Guaraní, among others), that improves the employability of the members of these communities and their integration in the regional economy. It also is aimed at improving the corporate governance structure of Desdelsur, increasing its operational efficiency and consolidating its decision-making process.
Desdelsur will receive advisory for the implementation of environmental and social practices in key areas, such as the creation of an integrated management system in environmental, social, health and safety matters, and the implementation of improvements to the waste treatment system.
Argentina is one of the five largest net exporters of food in the world thanks to its agronomic and climate conditions and the quality of its soils, which allow high productivity at a lower cost. The value chain of the agricultural sector is one of the strategic pillars of its economy, representing 20 percent of gross domestic product (GDP), bringing together 400,000 companies and generating more than 30 percent of the country’s total employment.
IDB Invest, a member of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a portfolio of assets of $12.1 billion under management and 329 clients in 21 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the needs of its clients.
Established in the Netherlands, Rabobank is a leading global bank with more than 1,000 branches in more than 40 countries and around 50,000 employees worldwide. Rabobank operates on the basis of cooperative principles with strong agricultural roots, counting on a trajectory of more than a century in the financing of agribusiness through long-term relationships. Rabobank is committed to sustainable global food, being the leading bank in the field of food and agriculture worldwide through its unique vision of Banking for Food (Banking for Food). Rabobank has been in Argentina since 1993 as the Representative Office and, over the years, forged solid relationships throughout the industry by providing ongoing support to agribusiness companies in the country, with a portfolio of more than $1,500 million dollars
Desdelsur is the main producer, processor and exporter of pulses in Argentina, with 10 percent market share nationally, and one of the largest producers of steers for export in northwestern Argentina. Desdelsur, founded in 1986, has its operation in the province of Salta, in northwestern Argentina, where 37.7 percent of households are below the poverty line. The company sows more than 50,000 hectares distributed among pulses, peanuts and fodders of which 26,668 are owned, three processing plants, and one of the largest and most innovative feedlots in Argentina with capacity for 80,000 heads. Its vertically integrated business model, from the development of crops and the export of more than 60,000 tons of legumes and oilseeds, to the transformation of discarded vegetable protein into animal protein, allows it to maximize the sustainability of resource use.